Samsung now says paying Microsoft after Nokia acquisition violates anti-trust laws

Samsung now says paying Microsoft after Nokia acquisition violates anti-trust laws
Samsung is facing significant legal battles on two fronts, one being the well-known drama that is Apple v. Samsung, and the other is the less expensive, but equally relevant Microsoft v. Samsung.

Microsoft makes a lot of money from license fees for patents it owns and are put to use in the Android operating system. Samsung, being the largest (and most successful) manufacturer of Android powered devices, pays Microsoft a handsome sum of money to that end.

Microsoft contends that Samsung has not been keeping its end of what is certainly a very large and complex patent fee agreement. The two companies have been in talks over the issue for several months, culminating with Microsoft filing a lawsuit in early October over interest owed on a late payment of $1 billion.

Samsung’s position was that the acquisition of Nokia Devices by Microsoft breached the license agreement signed in 2011. Now, Samsung is playing that card again, but twisting the argument a bit. Samsung says that actually paying Microsoft royalties, following the close of the Nokia deal, is an antitrust violation. The deal between Samsung and Microsoft stipulates that Samsung would share sensitive data with Microsoft while the former developed a robust line of Windows Phones. The more Windows Phones Samsung sold, the lower its Android royalty payments would get.

It is no secret that the only line of Windows Phone devices selling in any volume are Lumia branded handsets, so the prospect of Samsung paying less in Android fees is not likely. Samsung contends that once the deal with Nokia Devices closed, Microsoft became a direct hardware competitor, and sensitive data could no longer be shared among the two companies. “The agreements, now between competitors, invite charges of collusion,” according to a Samsung statement.

Microsoft remains confident in its case, and given that Samsung paid nearly $1 billion to Microsoft in license fees on sales of 300 million handsets, it is easy to see why Microsoft is not letting the matter go so easily.

source: ZDNet

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95 Comments

1. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Patent troll.

2. renz4

Posts: 319; Member since: Aug 10, 2013

lol. is this about patent?

33. tedkord

Posts: 17356; Member since: Jun 17, 2009

Well, yeah. It is.

43. The-Sailor-Man

Posts: 1095; Member since: Mar 25, 2014

It's about Nokia's patents, that Nokia cross-licensed with Samsung patents so both companies to use them for free. And now MS want to take money from them . But bashing Samsung must go on, no matter what. Right?

52. MySchizoBuddy

Posts: 159; Member since: Aug 23, 2011

This isn't about Nokia patents but the royalty Samsung pays to Microsoft over Android. Samsung is arguing that after Nokia acquisition it no longer has to pay those royalties, because is now a mobile manufacturer and in direct competition to Samsung. But mindless backing of samsung without using ones brain must go on no matter what right?

53. Diazene

Posts: 129; Member since: May 01, 2013

Did you even read the article? I guess you didn't, they are MS patents which samsung used to pay, clearly says so up there. just running to the comments to defend samsung isn't really great practice

54. The-Sailor-Man

Posts: 1095; Member since: Mar 25, 2014

The article DIDN'T explain you well, what exactly is going on. And that is with iObvious purpose. They just put a dust and misty over this case , and spice it the way they want mixing the truth and manipulations..

62. cheetah2k

Posts: 2256; Member since: Jan 16, 2011

Just typical iph0ne4rena reporting... The real truth is always twisted on here. Just have to accept it

63. Diazene

Posts: 129; Member since: May 01, 2013

Sorry, I think this is in the article "Samsung’s position was that the acquisition of Nokia Devices by Microsoft breached the license agreement signed in 2011."

75. The-Sailor-Man

Posts: 1095; Member since: Mar 25, 2014

What legal tactic should choose Samsung , is completely different story. iGnorant. Do not only read the tech media(?), but read between the lines, and inform yourself not only by the apple's propaganda bashing Samsung dirty.

81. Ashoaib

Posts: 3282; Member since: Nov 15, 2013

bashing samsung dirty is a nice terminology, apple tried it a lot

3. Liveitup

Posts: 1798; Member since: Jan 07, 2014

Cause spending billions of dollars on R&D just for others to use it for free is the right way to go, I wonder if Samsung will be called a patent troll if others violates its patent. Sammy has no integrity in the sense that they knew what they signed up for and didn't make a fuss when the deal was first announced. I feel confident that In the future Samsung is going ripoff Microsoft Live Tiles and call them something else watch and see maybe then MS should sue them again.

5. razraptre

Posts: 168; Member since: Oct 21, 2014

Exactly what I was thinking. Tell me anyone in today's world who behaves like Nikola Tesla and gives away their inventions for free.

9. vincelongman

Posts: 5693; Member since: Feb 10, 2013

True, Tesla Motors is the only recent one I can think of at the moment

11. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

You forgot the little guy call open source. I exploring one of their little contribution called Ubuntu 14.04 LTS. Build a powerful ZFS NAS with it. It's more powerful and flexible then my current windows 8.1 desktop. More people should use it just need a little time to learn new ways of doing things more efficiently.

23. vincelongman

Posts: 5693; Member since: Feb 10, 2013

Yea true, gotta love open source software Not a Linux user, but I'm really happy that more games are being porting over to Linux, especially with support from Valve and Humble Bundle MS seems to been trying to stop PC gaming, e.g. buying Bungie, stopping them from release the rest of the Halo games on Windows/Mac, and similar with Gears of War and also the Rise of the Tomb Raider being timed exclusive

27. 87186

Posts: 312; Member since: Aug 01, 2014

"MS seems to been trying to stop PC gaming..." uh yea, do you even game. EVERY platform has exclusives. so by your logic, Sony is also trying to stop PC gaming. you do realize they would be shooting themselves in the foot by doing so, right? WINDOWS is the primary OS for PC gaming. your accusation is not only silly, but absolustely ridiculous. give it a rest. this whole anti MS fad is growing old. especially when people are using example like this. oh also, PC has exclusive titles. so again by your logic, they are trying to kill consoles? give it a rest.

29. vincelongman

Posts: 5693; Member since: Feb 10, 2013

I'm not anti MS, in fact I'm in the minority that like Windows 8.1 (always hated the Start Menu and prefered Mac's dock instead) IMO its anti-competitive to pay third parties to stop them from publishing the sequels to their games on other platforms I don't think Sony has bought/paid a publisher/studio to not to publish the sequels to their games on other platforms If you can name one go a head. E.g. Halo was announced for PC/Mac, then MS bought Bungie and Halo was delayed for PC/Mac. And then MS forced Bungie not to release Halo 2 for Mac, and Halo 3 for PC. MS make much more money from Xbox than Windows licenses since if people buy a Xbox they will continue to buy games which MS take a cut from Most PC exclusive are because controllers aren't suited for them, e.g. MOBAs Or because consoles just aren't powerful enough yet, e.g. Star Citizen

42. remixfa

Posts: 14605; Member since: Dec 19, 2008

Your conspiracy theory makes no sense. Why would MS want to "kill PC gaming", when they have a near monopoly on the HUNDREDS OF MILLIONS of PC's out there? They LOST money on Xbox/360/One for the majority of the console's existance. They MAKE money on every windows PC sold, and every windows game sold. Your conspiracy theory makes no sense because you have no idea what your talking about. And yes, both MS and Sony have bought publishers and brought them in house for their development prowess and exclusive titles. PAYING a large sum of money for an exclusive title isnt anti-competitive, its the very heart of competition.

46. chromoid

Posts: 37; Member since: Oct 03, 2013

They don't make money on every windows game sold. Not even half of the games. You could develop for Windows and sell the game with out going though microsoft.

57. vincelongman

Posts: 5693; Member since: Feb 10, 2013

They would have lost much more if PC gamers weren't forced to buy xboxes to play Halo 3 and later (Halo 2 and later for Mac users). Seems like you don't even know a single thing about PC Gaming since you think MS make money of PC games No one buys physical PC games, that's why MS' Games For Windows Live is dead Everyone buys them online, MS doesn't have an online store except the Metro store with only touch apps

91. razraptre

Posts: 168; Member since: Oct 21, 2014

Yeah, what happened with FROM Software's "Bloodborne", scheduled to launch on PS4 only? Their previous game Dark Souls was cross platform; the new one won't even come out on PC.

22. sgodsell

Posts: 7367; Member since: Mar 16, 2013

Microsoft really is evil. No wonder why no other OEM wants to make WP devices unless they get paid up front for making a WP device. If you just look at the WP world (which is small, we know), then Microsoft's Nokia devices control around 95% of all the actual hardware sales and market share. Everyone is competing with not only Microsoft's vast majority in the WP hardware, but Microsoft also controls every aspect of the software as well. Anyone with half a brain can see what Microsoft has done here.

38. Liveitup

Posts: 1798; Member since: Jan 07, 2014

Microsoft isn't evil , Google is the one that is evil, its keeps its apps and services from WP platform while MS extends its apps and services across Googles platform, for a company that prides itself on not being evil they are just that. WP is license free with over 20 OEMs, and yes many OEMs makes Windows phones. Your point about MS making the majority of WP hardware is of little value cause WP compared to Android and iOS is a smaller platform with room to grow. What you put in is what you get out, here is how trolls like yourself and the Offfxxxx guy thinks, had Microsoft not continued making Lumias and its marketshare fell trolls like you would be like " well WP is a complete failure no one wants it" people like you will critercize MS not matter what. Another thing that shows your blatant hypocrisy is saying MS is controlling the software, while that is true MS never hid that fact if is a closed source OS everyone except you seems to know this, here is where you hypocrisy shows Google who prides itself on being Open sourced but recently has been trying to control the OS more and more fighting with OEMs making the OS more difficult they have Android one at the low end and was pushing OEMs to place Android Silver at the high end on OEMs which basically would have done away with customization and run pure Android the OEMs had to tell Google no, so who is really evil the company that was upfront from the get go about it OS plans or the one who pride itself kn being one way then when it has the market share all of a sudden want to basically pull a 180 on those who made it was it is. Come to think of it its basically what Samsung has done okay with something originally then later on try to change things. Guess they go hand in hand. People like you lack a moral compass. You call those who was upfront from the get go evil. You defend those whose actions are clearly dirty.

47. sgodsell

Posts: 7367; Member since: Mar 16, 2013

You must love to twist the truth and tell lies all the time. Google keeps its apps and services from what? Oh that's right from little ole WP with its pathetic market share. That kind of reminds me of how Microsoft has never put its apps and services on Linux flavors. The real funny part is just recently when Microsoft stated that Microsoft loves linux. What a joke and a liar. Where are the apps and services again for Linux. Linux is 22 years old now. So where are Microsoft's apps and services for Linux? Microsoft and you like to use words like Microsoft is putting its apps and services on its platforms? You mean like Android. Where are the services and apps for Chrome OS or Linux? Microsoft came out with a band just recently and used words like it has cross platform support. However leaving out things like if you don't have a WP device, then our band its really a fancy fitness tracker on iOS and Android and the mic is useless. Microsoft and you are always leaving out information and not telling, or showing the entire truth. WP is only license free because of Android, and Microsoft can have a million OEMs signed up to make devices. BTW Microsoft had 13 OEMs signed up to make WP devices back in 2010 when WP was first released. But still to this day hardly any OEMs are making WP devices. Also Microsoft's and their Nokia phone division have over 95% of the WP market. So what should every OEM do. Make WP devices for Microsoft? What's to stop Microsoft from changing the license fee down the road from free to Microsoft starting out with a small fee and growing it from their. Absolutely nothing. This cannot be done for Android because its Open source code. You at least admit and the vast majority know (including me), that Microsoft is controlling all aspects of not only WP, but every piece of software they have. Then you go on to talk about Android Silver. Google wanted its apps and services to be shown prominently on the Android device. Instead since Android OS is open source. People can add or tweaked the OS and add their own apps and services as well. Its a little hard to put the cat back in the bag for Android. Some have included their own email, browsers, and other apps and services first, instead of Google's. A nice example of this is Microsoft's Nokia X which included a launcher that resembles WP, and none of Google's apps or services where even found on those devices. Only Microsoft's apps and services were found on them. It was kind of funny because Microsoft and Nokia were using words like its using Android. But left out the part where you will not see any of Google's apps and services. Also remind all of us again which company is running the scroogle ad campaign? You say I lack a moral compass. My god man. You must sleep with the devil himself. Also you must have been born yesterday or something, because the majority of the world knows how dirty MS really is.

64. Liveitup

Posts: 1798; Member since: Jan 07, 2014

Twist the truth and tell lies all the time, are you kidding me?, such bollocks, sorry i don't live on the internet so i just read your comment, like i stated you lack moral compass. First you carry on about Windows Phone market share, here is what you left out, even though Windows Phone marketshare is low there are tens of millions of Windows Phone, over 80 million and Microsoft is selling more WP than ever before 10.5 the last quarter including 9.3 million Lumias more than ever before. http://wmpoweruser.com/strategy-analytics-awards-windows-phone-10-5-million-shipments-in-q3-2014/ That's 80 million users that Google is depriving. Of the top 10 apps being used all of them are on WP except for Google's. http://blog.globalwebindex.net/Top-global-smartphone-apps Even developers without the resources of Google has apps on WP platform. Whats Googles and yours excuse, the one you provided is invalid, If smaller developers can they have no excuse the users are there. It has been suggested by others including Microsoft that Google wants to kill off WP also. http://www.smh.com.au/digital-life/mobiles/microsoft-accuses-google-of-trying-to-sabotage-windows-phone-20130816-2s0jo.html http://thenextweb.com/insider/2013/01/05/calling-shenanigans-on-googles-windows-phone-8-maps-narrative/ From Youtube to maps etc Google has been giving WP a very difficult time. You are either ignorant or blind to that reality, either way its a negative. Maybe you have been sleeping but times are changing, Microsoft is bracing openness under their new CEO, matter of fact after decades of resistance, Microsoft supports a variety of open-source programs such as the big data Hadoop; Docker containers; and Facebook's Open Compute datacenter project. Microsoft is even open-sourcing more of its own technologies such as parts of .Net. you simply have not been paying attention lol. Read up on how Microsoft is being transformed. http://time.com/3550140/satya-nadella-microsoft-2/ Microsoft Band has cross platform compatibility, are you insane just because a is missing a feature does not mean its not cross platform. Everyone else seems to agree with this except you. http://www.wired.com/2014/10/microsoft-health-band/http://gadgets.ndtv.com/wearables/news/microsoft-band-fitness-tracker-and-cross-platform-health-service-launched-613875 So know i guess you realised that WP is free and not like you earlier mentioned in your first comment that they get paid up front for making a WP device. Additionally WP is partly free because of Android in the sense that MS realised they had to do something to get more OEMs on board in order to help with the onslaught of free Android devices. Yes WP had 13 OEMs back then but they had to pay a license fee to make WP so of course they chose the free OS that's more popular instead of paying for a less popular OS which as i mentioned is part of the reason why Microsoft decided to let the OS be licensed free.

65. Liveitup

Posts: 1798; Member since: Jan 07, 2014

Blu, Karboon, HTC, Xolo, ZTE, Archos, KAZAM, Yezz, NGM, Harley Davison etc have all made WP devices as time goes on and Microsoft one OS strategy takes a hold im confident more mainstream OEMs will jump aboard. Android Silver was supposed to get high-end STOCK Android phones into the hands of users, sort of like the Nexus program, but in a way that was more mainstream and inclusive of the rest of the industry. Silver would have given big ad dollars to OEMs and carriers in exchange for sticking to Google's guidelines. Just like Nexus phones, Google would handle the software and updates, and it would be up to OEMs to create "premium" HARDWARE. The program was expected to launch in the US, Germany, and Japan as early as next year, get the facts. You carry on about the Scroogled campaign ask yourself what exactly does the scroogled campaign do. It basically educates individuals about how Google violates their privacy, doesn't keep its promises its not just MS but well known organisation have made that claim. http://www.nytimes.com/2013/10/02/technology/google-accused-of-wiretapping-in-gmail-scans.html?_r=1& http://www.businessweek.com/articles/2013-08-14/googles-legal-defense-ignores-its-own-longtime-privacy-promises http://www.boston.com/business/innovation/blogs/inside-the-hive/2013/08/13/gmail-little-too-open-google-says-users-should-have-expectation-privacy/NUqJt1bPsDEcCiQB78UKdL/blog.html etc etc etc Even Edward Snowden said to avoid Google. http://www.newsweek.com/wary-privacy-issues-ditch-dropbox-and-avoid-google-says-edward-snowden-276956 I am okay with any company calling the other out as long as its for the benefit of the consumer being educated, Google could always respond defend themselves, i could be wrong but they haven't, why is that. Like i said your moral compass is lacking, ill be the first to admit that in the past MS wasn't the nicest company in their actions but times have changed you are Living in the past, wake up its a new Era, a new MS, everything about MS has changed from its logo to its products to its attitude, on the other hand Google is becoming more and more like the old MS.

84. jroc74

Posts: 6023; Member since: Dec 30, 2010

Scroogled educates? Seriously? I dont know what to even say now... I knew you were kinda fanboying with the 'Flat UI copying crusade'...but this takes the cake. How is educating someone about something your...own ...services do or does very similar....educating? Thats called FUD in my book. Please, please.....go and read the ad/tracking policy for hotmail.com/outlook.com....and try again. Check the ad blocking settings for both Gmail and hotmail/outlook.com and try again. How about with each built in settings its alot more effective to block ads in Gmail vs. hotmail/outlook.com. And yet Google is evil...wow...

87. nasznjoka

Posts: 418; Member since: Oct 05, 2012

You sir are funny!! You were asked alot of questions and yet you decided to skip them and respond on market share you pathetic wp blindfanboy. Linux is how many years OLD and name ONE MS service or product on that line?? Blind

89. jroc74

Posts: 6023; Member since: Dec 30, 2010

lol...yea I noticed how he skipped entirely over this..

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